The Tax Foundation

August 30, 2007

Lawmakers Must Examine Federal Government's Role in Transportation Before Raising Gas Tax

by Alicia Hansen

Several proposals have recently been put forth by members of Congress to raise the federal excise tax on gasoline. Some lawmakers see raising the gas tax as a way to  reduce greenhouse gas emissions, and some see it as a potential source of revenue for improving the nation's infrastructure.

A recent Baltimore Sun editorial targets the use of earmarked gasoline tax revenue:

A proposal to raise the federal gasoline tax to repair the nation's 70,000 faulty bridges might have a better chance if it hadn't been for the "Bridge to Nowhere."

The infamous Alaska structure designed to serve a handful of remote citizens became a symbol of what's wrong with the practice of letting federal lawmakers "earmark" tax dollars for their pet projects: The money is not being spent according to safety and transportation priorities.

Before Congress asks taxpayers to pony up more money to fix failing bridges, it must abandon this pork barrel process and ensure instead that transportation dollars are directed to where they are most needed.

A new Tax Foundation Fiscal Fact also encourages lawmakers to examine their priorities and ask themselves several basic questions about gas taxes before raising the tax rate:

In the wake of the Minneapolis bridge collapse, there have been calls for the federal government to increase its gas tax in order to fund transportation infrastructure. Before Congress goes down that path, it needs to ask itself a few questions:

Read the Fiscal Fact, "Questions to Ask Before Raising the Federal Gas Tax," here. Click here for more on gas taxes.